Aircraft Value News [September 21, 2015] -

Issue: September 21, 2015

Record Backlog & Production Takes Toll on Values

While the low price of fuel should favor used aircraft the market continues to face the consequences of transitioning to new types and the preference for new rather than used aircraft. The displacement of older aircraft with new examples and the age profile of some narrowbodies is inevitably having an…

By: Aircraft Value News

September 21, 2015

AVN

Values of the -8I Continue to Tumble

The values of the -8I are sorely exposed to the vagaries of the market and as such have continued to deteriorate such that production may not last to the end of the decade. The market for the B747-8I, given the 51 orders and 35 deliveries, remains much more restricted than…

By: Paul Leighton

September 21, 2015

AVN

Values of Larger Used Widebodies Continue to Decline

Values of the larger used widebodies are continuing to fall despite record backlogs, high load factors and lower fuel prices and this rate of decline is expected to accelerate in the coming years as the preference for newer, more versatile and economic aircraft increases. Demand patterns for larger widebodies have…

By: Paul Leighton

September 21, 2015

AVN

Values of “Five Year Old” Aircraft Worth Less Today Than 2010

In assessing the performance of aircraft as assets the overall trend for both widebodies and narrowbodies shows a decline though in terms of lease rentals the differential is of lesser significance. In 2010 the value of a five year old A320 – ie an A320 delivered in 2005 – was…

By: Aircraft Value News

September 21, 2015

AVN

Transaero Takeover Not Likely To Impact Values in Isolation

The takeover of Transaero by Aeroflot was perhaps inevitable though the consolidation of the two large fleets is not expected to have a major impact on the values of any specific aircraft type. Gone are the days when the fortunes of a single carrier can alter values in the short…

By: Paul Leighton

September 21, 2015

AVN

B777-200LR Values Faces Marginalization Issue

The values of the B777-200LR are already under pressure but with no backlog and the last delivery having been made nearly a year ago, the prospects for remarketing used examples is likely to only worsen such that marginalization looms. The B777-200LR, along with the A340-500, were designed to eliminate the…

By: Paul Leighton

September 21, 2015

AVN

Aircraft Asset Assessment

Market Presence. The development of the B747-8I improves the operating economics of the type. Airbus indicate that the A380 currently offers a 15-20 percent efficiency improvement over the B747-400. The larger -8I makes the differential much more marginal. With the B747 perceived to be a known quantity and proven product…

By: Paul Leighton

September 21, 2015

AVN

Turboprop Rentals Focus on New Types

While the leasing of turboprops remains profitable for lessors it is notable that such leasing tends to focus on the newer aircraft types such as the Dash8-300, -400, ATR42-500, ATR72-500/-600 as these can be more easily placed. Other types of turboprops are leased but a finance lease or traditional finance…

By: Paul Leighton

September 21, 2015

AVN